DEVELOPMENT
NOTECARDS
PAGES 274 - 302
DEF – Natural advantage.
EX – Saudi Arabia has a natural advantage over most
countries in petroleum production.
South Africa - Diamonds
DEF - Economy in which like
things are put together to their
benefit all businesses. But
bringing all people to one area
increases congestion.
EX – Tech Center?
The entertainment industry in in
Los Angeles / Hollywood.
Silicon Valley – computer and
software industry.
NYC – finance activities.
Hartford, CT – insurance related
industry.
DEF - Industries that
sell their products or
services primarily to
consumers outside
the settlement. A
focal point of the
economy for a city.
Pittsburgh – Steel
Detroit –
automobiles
Non basic - Industries that sell their
products primarily to consumers in the
Minneapolis – was community. EX – diners /
the milling industry. convenience stores
DEF - An
imaginary line
separating the
MDCs in the
Northern
Hemisphere from
the LDCs in the
Southern
Hemisphere.
DEF - the ability of an
individual, firm, or country to
produce a good or service at
a lower opportunity cost than
other producers.
Regions should produce
goods for which they have
the greatest relative
advantage over other areas.
EX – Egypt has a
comparative advantage in
cotton production over the
US.
DEF - Core countries have high levels of
development, a capacity at innovation and a
convergence of trade flows. Periphery countries
usually have less development and are poorer
countries.
Ex - The USA is a core country, while Northern
Sudan is a periphery country.
DEF – Development school of thought that advocates they dynamic
between highly developed and developing countries, permanently keeps
LDCs at an economic disadvantage.
Conflict; as developing countries make economic advancement, they
are dependent on the core countries in an intertwined global economy.
Most will never achieve first world status. The MNC(TNC) exploits local
workers to maximize profits and forces out local companies. Workers in
developing countries serve as cheap labor pool.
EX – El Salvador has gone through a process of dollarization, through
which the country’s currency, the colon, was abandoned in favor of the
dollar. For the people of El Salvador, dollarization made sense because
the economies were tied long before dollarization occurred. When the
Federal Reserve Board in the US controls the supply of dollars by
altering the interest rates, the ramifications are felt directly in El
Salvador.
DEF - The increase in the standard of living in a nation's population with
sustained growth.
EX - China is at a lower stage of economic development compared to Italy.
DEF - A piece of economic
data, usually of
macroeconomic scale, that
is used by investors to
interpret current or future
investment possibilities
and judge the overall health
of an economy.
EX - GDP-Gross Domestic
Product
DEF - The country's GDP, plus the income earned from the country's
investments in other countries.
EX - LDCs tend to have smaller GNIs (smaller economies, less
worldwide expansion) than MDCs (bigger economies, more worldwide
expansion).
GROSS NATIONAL
PRODUCT
DEF – This value of the total output of goods and services
produced in a country in a given time period (normally 1
year.)
EX -
DEF - government policy of encouraging local manufacturers to produce
goods that would replace imports
EX – India encouraging the building of the Tata Nano car to avoid
importing foreign cars.
DEF - The tendency of an economic activity to locate close to its market;
a reflection of large and variable distribution costs.
The preference for market locations by industry because the freight rates on
raw material assembly are usually less than the freight rates on product
distribution due to the nature of the freight rate structure in the United States.
EX - Occurs when a product is more costly to transport than raw
materials (e.g., beverages, glass bottling near breweries like Budweiser.)
DEF - The practice of loaning people in poverty small
amounts of money, in order for the destitute people to start
their own small business and earn a living.
EX - Grameen Bank
DEF - Control by a powerful country of its former colonies (or other less
developed countries) by economic pressures.
Ex: To some degree, the Commonwealth of Nations countries are being
economically pressured to cooperate with the UK.
DEF - Service sector industries concerned with the collection,
processing, and manipulation of information and capital.
EX - include finance, administration, insurance, and legal services.
DEF - Service sector industries that require a high level of specialized
knowledge or technical skill. Examples include scientific research and
high-level management.
DEF - The location of the manufacturing plant in relation to the
source of raw materials. While most industries would prefer to
locate near their markers in order to save the recurring costs of
transportation, some industries - especially those that involve a
loss of weight, bulk, or perishability in the process of
manufacturing - might prefer to locate near their source of raw
materials since their material index is much greater than 1.0.
Tendency for industry to locate near its source of raw material in
order to save transport costs.
Usually occurs when raw materials lose weight in the
production process.
EX - Paper or steel industries.
DEF - The stimulation of economic growth by growth itself.
As secondary industries develop they create a demand for
raw materials and goods.
EX – Machinery is made from steel and this stimulates steel
manufacturing while the development of the steel industry
requires more machinery. As manufacturing industry
prospers, more jobs arise in service industries.
SUBSISTENCE
ECONOMY
DEF - a type of
economy in which
human groups
live off the land
with little or no
surplus.
EX – Native
American tribes.
The Aborigines.
The Bush people
of the Kalahari.
SUSTAINABLE
DEVELOPMENT
DEF – The level of development that can be maintained in a
country without depleting resources to the extent that future
generations will be unable to achieve a comparable level of
development.
Advocates that the best strategies for development are the
use of microloans for women and the poor, small scale
community based projects, and resource conservation.
EX - Ecotourism
DEF - Increased wealth for upper class means benefits for
the lower class.
EX – Ronald Regan. If the upper class have “extra money”
and are well off, they will spend money, that money will
stimulate the economy and everyone will benefit because the
economy will grow.
INFORMAL SECTOR
Def – The portion of an economy largely outside government
control in which employees work without contracts or
benefits
Ex – Beggars, organized crime, child labor, person who
works from home – in-home child care provider
NEOLIBERAL
COUNTERREVOLUTION
Development school of thought that advocates countries
who wish to improve their economy should privatize
industries, encourage foreign investment and move
towards free trade.
EX – China in the 1980 – moving away from the communist
idea of the state owning everything to individual
businesses owning private property.